• Daniel Menezes Gil

Post-Coronavirus Planning

In times of pandemic by COVID-19 and its repercussions on business, such as the disappearance of customers, drop in revenues and the need for financial resources to meet current expenses and fixed costs, I understand that the premises for a new planning of companies must meet two important focuses:

1. The first focus of the planning should be to meet the short-term needs, to look for resources to meet the expenses with employees and the fixed costs of the company in the short-term, dimensioning a period not less than 3 months without revenue.

2. The second focus is to carry out the company's planning for the medium and long term, taking into account three different scenarios with the following characteristics and criteria:

· Pessimistic scenario: with the premise that there will be no revenue for a period of 6 months or more and with this the company must maintain its operational structure, attend fixed costs and retain employees or reduce the workforce for this phase;

· Conservative scenario: this premise should include the beginning of billing after the end of the quarantine period, in a volume below the history prior to the pandemic crisis and review of its cost structure for this phase; and

· Optimistic scenario: the premise for this scenario should take into account the beginning of billing, at low levels, and with its evolution to the historical billing pattern, taking place in a period from the end of quarantine period up to 6 to 10 months forward, and adapting its cost structure for this phase.

These are some suggestions for your company, as the market and analysts are unable to predict what will happen in the coming months, because there are no reliable parameters for a forecast

Good Business.

Daniel Menezes Gil



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